The differing benefits of payment protection insurance and critical illness cover are of great confusion to some people.
On the face of it these two policies seem to offer protection against the same set of circumstances, specifically illness and injury.
People purchase these types of insurance because they are worried about the financial repercussions of a lengthy lay off from work.
They invest in such cover to guard against unplanned for and potentially life changing events.
Before considering the major advantages of payment protection insurance and critical illness cover, let us first consider the main details of each policy.
It is important to remember that PPI can defend your finances against an extensive range of illnesses and injuries.
It also offers long term protection, right up to the age of retirement.
This kind of policy will remain valid, whether or not you use it on multiple occasions.
A critical illness policy, on the other hand, will terminate after being used once.
It is also restrictive in the nature of injuries and illnesses that it covers.
Although different providers offer various levels of protection, illnesses covered by the majority of critical illness packages include cancer, multiple sclerosis and HIV.
Unlike PPI compensation, which is calculated based upon the earnings of the claimant, CIC is paid out as one lump sum, irrespective of employment status.
It is worth bearing in mind that the amount paid out by a payment protection insurance policy is liable to be significantly less than that under critical illness cover.
However, should an individual covered solely by a CIC policy become infected by a virus or injured in a manner isn't deemed 'critical' they could be left in a very precarious financial state.
This is one of the major reasons why experts have declared that it makes sense to invest in both forms of protection.
It is understood that not everybody can afford to pay out for both PPI and CIC, especially with mortgage repayment obligations and pressure in the current financial climate.
Where price is an issue it might well be worth weighing up your individual circumstances and speaking with companies specialising in each form of protection.
After a little time researching the market you should be able to find a policy which offers peace of mind.
For further information regarding CIC it is well worth heading across to the FSA's Money Made Clear website, and for details of the issues surrounding PPI it is well worth looking at independent review sites.
On the face of it these two policies seem to offer protection against the same set of circumstances, specifically illness and injury.
People purchase these types of insurance because they are worried about the financial repercussions of a lengthy lay off from work.
They invest in such cover to guard against unplanned for and potentially life changing events.
Before considering the major advantages of payment protection insurance and critical illness cover, let us first consider the main details of each policy.
It is important to remember that PPI can defend your finances against an extensive range of illnesses and injuries.
It also offers long term protection, right up to the age of retirement.
This kind of policy will remain valid, whether or not you use it on multiple occasions.
A critical illness policy, on the other hand, will terminate after being used once.
It is also restrictive in the nature of injuries and illnesses that it covers.
Although different providers offer various levels of protection, illnesses covered by the majority of critical illness packages include cancer, multiple sclerosis and HIV.
Unlike PPI compensation, which is calculated based upon the earnings of the claimant, CIC is paid out as one lump sum, irrespective of employment status.
It is worth bearing in mind that the amount paid out by a payment protection insurance policy is liable to be significantly less than that under critical illness cover.
However, should an individual covered solely by a CIC policy become infected by a virus or injured in a manner isn't deemed 'critical' they could be left in a very precarious financial state.
This is one of the major reasons why experts have declared that it makes sense to invest in both forms of protection.
It is understood that not everybody can afford to pay out for both PPI and CIC, especially with mortgage repayment obligations and pressure in the current financial climate.
Where price is an issue it might well be worth weighing up your individual circumstances and speaking with companies specialising in each form of protection.
After a little time researching the market you should be able to find a policy which offers peace of mind.
For further information regarding CIC it is well worth heading across to the FSA's Money Made Clear website, and for details of the issues surrounding PPI it is well worth looking at independent review sites.
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